All About Hiring Employees in Panama
Get the information you need to hire in Panama. Learn how Justworks EOR can help you streamline international hiring and manage employees abroad.
The Benefits of an EOR for Hiring in Panama
Hiring in Panama doesn’t have to be complex. From employment contracts to payroll and benefits, Justworks manages compliance so you don’t have to.
Whether you’re hiring your first employee or building a growing team, Justworks helps you navigate Panama’s labor laws without the need to set up a local entity. We simplify HR operations with built-in support, localized expertise, and a streamlined onboarding experience that sets your team up for success.
Options for Hiring in Panama
Partnering with an EOR
When you work with Justworks, you can avoid the expensive process of establishing a legal entity.Â
We oversee most local HR operations on your behalf, including:
Ensuring compliance with local labor laws and regulations
Creating employment contractsÂ
Managing payroll, payroll taxes, and related payments like withholdings and deductions
Administering local benefits
Hiring Practices
In Panama, employment contracts are required by law and must be in Spanish. Contracts must be executed in three original copies, one for the employer, the employee, and one for the Ministry of Labor to be registered within 15 business days of hiring. Contracts must also include the following details:
Full names and identification of both parties
Start date and place of work
Job title and general responsibilities
Salary and payment frequency
Working hours and days
Duration (indefinite or fixed term)
Probationary period (if applicable, limited to 3 months)
Vacation entitlement and holiday obligations
Reference to internal regulations or collective agreements
Background Checks
There are no blanket prohibitions on background checks in Panama, but any pre-employment screening must comply with privacy standards and be directly relevant to the role. Medical exams may be required for specific industries or positions, and criminal record checks are typically initiated by the applicant and shared voluntarily with the employer.
Ready to Hire Confidently in Panama?
Justworks makes building your global team seamless by helping you hire and onboard talent in Panama and beyond. Save yourself the time and hassle of international hiring today.
